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Germany vs. Russia

Economy

GermanyRussia
Economy - overviewThe German economy - the fifth largest economy in the world in PPP terms and Europe's largest - is a leading exporter of machinery, vehicles, chemicals, and household equipment and benefits from a highly skilled labor force. Like its Western European neighbors, Germany faces significant demographic challenges to sustained long-term growth. Low fertility rates and a large increase in net immigration are increasing pressure on the country's social welfare system and necessitate structural reforms.

Reforms launched by the government of Chancellor Gerhard SCHROEDER (1998-2005), deemed necessary to address chronically high unemployment and low average growth, contributed to strong growth and falling unemployment. These advances, as well as a government subsidized, reduced working hour scheme, help explain the relatively modest increase in unemployment during the 2008-09 recession - the deepest since World War II. The German Government introduced a minimum wage in 2015 that increased to $9.79 (8.84 euros) on 1 January 2017.

Stimulus and stabilization efforts initiated in 2008 and 2009 and tax cuts introduced in Chancellor Angela MERKEL's second term increased Germany's total budget deficit - including federal, state, and municipal - to 4.1% in 2010, but slower spending and higher tax revenues reduced the deficit to 0.8% in 2011 and in 2016 Germany reached a budget surplus of 0.6%. A constitutional amendment approved in 2009 limits the federal government to structural deficits of no more than 0.35% of GDP per annum as of 2016, though the target was already reached in 2012.

The German economy suffers from low levels of investment, and a government plan to invest 15 billion euros during 2016-18, largely in infrastructure, is intended to spur needed private investment. Following the March 2011 Fukushima nuclear disaster, Chancellor Angela MERKEL announced in May 2011 that eight of the country's 17 nuclear reactors would be shut down immediately and the remaining plants would close by 2022. Germany plans to replace nuclear power largely with renewable energy, which accounted for 29.5% of gross electricity consumption in 2016, up from 9% in 2000. Before the shutdown of the eight reactors, Germany relied on nuclear power for 23% of its electricity generating capacity and 46% of its base-load electricity production. Domestic consumption, bolstered by low energy prices and a weak euro, and exports are likely to drive German GDP growth again in 2017.
Russia has undergone significant changes since the collapse of the Soviet Union, moving from a centrally planned economy towards a more market-based system. Both economic growth and reform have stalled in recent years, however, and Russia remains a predominantly statist economy with a high concentration of wealth in officials' hands. Economic reforms in the 1990s privatized most industry, with notable exceptions in the energy, transportation, banking, and defense-related sectors. The protection of property rights is still weak, and the state continues to interfere in the free operation of the private sector.

Russia is one of the world's leading producers of oil and natural gas, and is also a top exporter of metals such as steel and primary aluminum. Russia's reliance on commodity exports makes it vulnerable to boom and bust cycles that follow the volatile swings in global prices.

The economy, which had averaged 7% growth during 1998-2008 as oil prices rose rapidly, has seen diminishing growth rates since then due to the exhaustion of Russia’s commodity-based growth model.

A combination of falling oil prices, international sanctions, and structural limitations pushed Russia into a deep recession in 2015, with the GDP falling by close to 4%. The downturn continued through 2016, with GDP contracting by 0.6%. Government support for import substitution has increased recently in an effort to diversify the economy away from extractive industries. Russia is heavily dependent on the movement of world commodity prices and the Central Bank of Russia estimates that if oil prices remain below $40 per barrel in 2017, the resulting shock would cause GDP to fall by up to 5%.
GDP (purchasing power parity)$3.979 trillion (2016 est.)
$3.911 trillion (2015 est.)
$3.854 trillion (2014 est.)
note: data are in 2016 dollars
$3.751 trillion (2016 est.)
$3.774 trillion (2015 est.)
$3.92 trillion (2014 est.)
note: data are in 2016 dollars
GDP - real growth rate1.7% (2016 est.)
1.5% (2015 est.)
1.6% (2014 est.)
-0.6% (2016 est.)
-3.7% (2015 est.)
0.7% (2014 est.)
GDP - per capita (PPP)$48,200 (2016 est.)
$47,600 (2015 est.)
$47,500 (2014 est.)
note: data are in 2016 dollars
$26,100 (2016 est.)
$26,300 (2015 est.)
$27,300 (2014 est.)
note: data are in 2016 dollars
GDP - composition by sectoragriculture: 0.6%
industry: 30.3%
services: 69.1%
(2016 est.)
agriculture: 4.7%
industry: 33.1%
services: 62.2% (2016 est.)
Population below poverty line16.7% (2015 est.)
13.3% (2015 est.)
Household income or consumption by percentage sharelowest 10%: 3.6%
highest 10%: 24% (2000)
lowest 10%: 2.3%
highest 10%: 32.2% (2012 est.)
Inflation rate (consumer prices)0.5% (2016 est.)
0.3% (2015 est.)
5.8% (2016 est.)
15.5% (2015 est.)
Labor force45.3 million (2016 est.)
76.9 million (2016 est.)
Labor force - by occupationagriculture: 1.4%
industry: 24.2%
services: 74.3%
(2016)
agriculture: 9.4%
industry: 27.6%
services: 63% (2016 est.)
Unemployment rate4.3% (2016 est.)
4.6% (2015 est.)
5.3% (2016 est.)
5.8% (2015 est.)
Distribution of family income - Gini index27 (2006)
30 (1994)
41.2 (2015)
41.9 (2013)
Budgetrevenues: $1.523 trillion
expenditures: $1.497 trillion (2016 est.)
revenues: $186.5 billion
expenditures: $230.2 billion (2016 est.)
Industriesamong the world's largest and most technologically advanced producers of iron, steel, coal, cement, chemicals, machinery, vehicles, machine tools, electronics, automobiles, food and beverages, shipbuilding, textiles
complete range of mining and extractive industries producing coal, oil, gas, chemicals, and metals; all forms of machine building from rolling mills to high-performance aircraft and space vehicles; defense industries (including radar, missile production, advanced electronic components), shipbuilding; road and rail transportation equipment; communications equipment; agricultural machinery, tractors, and construction equipment; electric power generating and transmitting equipment; medical and scientific instruments; consumer durables, textiles, foodstuffs, handicrafts
Industrial production growth rate1.5% (2016 est.)
0.7% (2016 est.)
Agriculture - productspotatoes, wheat, barley, sugar beets, fruit, cabbages; milk products; cattle, pigs, poultry
grain, sugar beets, sunflower seeds, vegetables, fruits; beef, milk
Exports$1.283 trillion (2016 est.)
$1.309 trillion (2015 est.)
$285.5 billion (2016 est.)
$343.5 billion (2015 est.)
Exports - commoditiesmotor vehicles, machinery, chemicals, computer and electronic products, electrical equipment, pharmaceuticals, metals, transport equipment, foodstuffs, textiles, rubber and plastic products
petroleum and petroleum products, natural gas, metals, wood and wood products, chemicals, and a wide variety of civilian and military manufactures
Exports - partnersUS 9.6%, France 8.6%, UK 7.5%, Netherlands 6.6%, China 6%, Italy 4.9%, Austria 4.8%, Poland 4.4%, Switzerland 4.2% (2015)
Netherlands 11.9%, China 8.3%, Germany 7.4%, Italy 6.5%, Turkey 5.6%, Belarus 4.4%, Japan 4.2% (2015)
Imports$987.6 billion (2016 est.)
$1.017 trillion (2015 est.)
$182.3 billion (2016 est.)
$182.7 billion (2015 est.)
Imports - commoditiesmachinery, data processing equipment, vehicles, chemicals, oil and gas, metals, electric equipment, pharmaceuticals, foodstuffs, agricultural products
machinery, vehicles, pharmaceutical products, plastic, semi-finished metal products, meat, fruits and nuts, optical and medical instruments, iron, steel
Imports - partnersNetherlands 13.7%, France 7.6%, China 7.3%, Belgium 6%, Italy 5.2%, Poland 5%, US 4.7%, Czech Republic 4.5%, UK 4.2%, Austria 4.2%, Switzerland 4.2% (2015)
China 19.2%, Germany 11.2%, US 6.4%, Belarus 4.8%, Italy 4.6% (2015)
Debt - external$5.326 trillion (31 March 2016 est.)
$5.21 trillion (31 March 2015 est.)
$514.8 billion (31 December 2016 est.)
$520.2 billion (31 December 2015 est.)
Exchange rateseuros (EUR) per US dollar -
0.9214 (2016 est.)
0.885 (2015 est.)
0.885 (2014 est.)
0.7634 (2013 est.)
0.7752 (2012 est.)
Russian rubles (RUB) per US dollar -
68.06 (2016 est.)
60.938 (2015 est.)
60.938 (2014 est.)
38.378 (2013 est.)
30.84 (2012 est.)
Fiscal yearcalendar year
calendar year
Public debt68.2% of GDP (2016 est.)
71.2% of GDP (2015 est.)
note: general government gross debt is defined in the Maastricht Treaty as consolidated general government gross debt at nominal value, outstanding at the end of the year in the following categories of government liabilities (as defined in ESA95): currency and deposits (AF.2), securities other than shares excluding financial derivatives (AF.3, excluding AF.34), and loans (AF.4); the general government sector comprises the sub-sectors of central government, state government, local government and social security funds; the series are presented as a percentage of GDP and in millions of euro; GDP used as a denominator is the gross domestic product at current market prices; data expressed in national currency are converted into euro using end-of-year exchange rates provided by the European Central Bank
13.7% of GDP (2016 est.)
9.4% of GDP (2015 est.)
note: data cover general government debt, and includes debt instruments issued (or owned) by government entities other than the treasury; the data include treasury debt held by foreign entities; the data include debt issued by subnational entities, as well as intra-governmental debt; intra-governmental debt consists of treasury borrowings from surpluses in the social funds, such as for retirement, medical care, and unemployment, debt instruments for the social funds are not sold at public auctions
Reserves of foreign exchange and gold$173.7 billion (31 December 2015 est.)
$173.7 billion (31 December 2015 est.)
$365.5 billion (31 December 2016 est.)
$368.4 billion (31 December 2015 est.)
Current Account Balance$294.3 billion (2016 est.)
$280.3 billion (2015 est.)
$22.2 billion (2016 est.)
$69 billion (2015 est.)
GDP (official exchange rate)$3.495 trillion
$1.268 trillion (2016 est.)
Stock of direct foreign investment - at home$1.416 trillion (31 December 2016 est.)
$1.36 trillion (31 December 2015 est.)
$348 billion (31 December 2016 est.)
$342.9 billion (31 December 2015 est.)
Stock of direct foreign investment - abroad$2.08 trillion (31 December 2016 est.)
$1.972 trillion (31 December 2015 est.)
$359.3 billion (31 December 2016 est.)
$336.3 billion (31 December 2015 est.)
Market value of publicly traded shares$1.716 trillion (31 December 2015 est.)
$1.739 trillion (31 December 2014 est.)
$1.936 trillion (31 December 2013 est.)
$635.9 billion (31 December 2016 est.)
$393.2 billion (31 December 2015 est.)
$385.9 billion (31 December 2014 est.)
Central bank discount rate0.25% (31 December 2016)
0.3% (31 December 2010)
note: this is the European Central Bank's rate on the marginal lending facility, which offers overnight credit to banks in the euro area
10% (31 December 2016 est.)
11% (03 August 2015)
note: this is the so-called refinancing rate, but in Russia banks do not get refinancing at this rate; this is a reference rate used primarily for fiscal purposes
Commercial bank prime lending rate1.7% (31 December 2016 est.)
1.84% (31 December 2015 est.)
12.7% (31 December 2016 est.)
15.73% (31 December 2015 est.)
Stock of domestic credit$4.327 trillion (31 December 2016 est.)
$4.452 trillion (31 December 2015 est.)
$818.5 billion (31 December 2016 est.)
$603.9 billion (31 December 2015 est.)
Stock of narrow money$2.049 trillion (31 December 2016 est.)
$1.923 trillion (31 December 2015 est.)
note: see entry for the European Union for money supply for the entire euro area; the European Central Bank (ECB) controls monetary policy for the 18 members of the Economic and Monetary Union (EMU); individual members of the EMU do not control the quantity of money circulating within their own borders
$199.7 billion (31 December 2016 est.)
$151.5 billion (31 December 2015 est.)
Stock of broad money$4.347 trillion (31 December 2014 est.)
$4.451 trillion (31 December 2013 est.)
$177.2 billion (31 December 2016 est.)
$926.8 billion (31 October 2014 est.)
Taxes and other revenues43.6% of GDP (2016 est.)
14.7% of GDP (2016 est.)
Budget surplus (+) or deficit (-)0.7% of GDP (2016 est.)
-3.5% of GDP (2016 est.)
Unemployment, youth ages 15-24total: 7.7%
male: 8.3%
female: 7.1% (2014 est.)
total: 13.7%
male: 13.3%
female: 14.1% (2014 est.)
GDP - composition, by end usehousehold consumption: 53.7%
government consumption: 19.5%
investment in fixed capital: 20.1%
investment in inventories: -1%
exports of goods and services: 45.7%
imports of goods and services: -38% (2016 est.)
household consumption: 55.8%
government consumption: 19.9%
investment in fixed capital: 21.6%
investment in inventories: -3.2%
exports of goods and services: 25.8%
imports of goods and services: -19.9% (2016 est.)
Gross national saving27.9% of GDP (2016 est.)
27.7% of GDP (2015 est.)
27% of GDP (2014 est.)
24.7% of GDP (2016 est.)
23.8% of GDP (2015 est.)
23.7% of GDP (2014 est.)

Source: CIA Factbook